What criteria must properties meet to be eligible for coverage under the FAIR PLAN?

Coverage under the FAIR PLAN is designed to provide insurance to properties that are unable to secure coverage in the standard market due to factors such as higher risks. Specifically, the program targets those properties that ordinarily meet the criteria for obtaining property insurance but have been denied coverage from standard insurers. This typically includes homes and businesses that may be located in areas deemed too risky or those that have had previous insurance claims leading to higher rejection rates.

This is not the case with properties that are newly built and high in value, as they usually attract insurance interest due to their perceived lower risk of loss. Similarly, properties located in areas with minimal loss history are generally considered favorable by traditional insurers and should have no difficulty obtaining coverage. Lastly, properties owned by state agencies do not automatically qualify for coverage under the FAIR PLAN, as eligibility is based on the inability to obtain coverage rather than ownership type. Thus, the criterion focusing on properties that would qualify under normal circumstances but have been refused aligns perfectly with the purpose and intent of the FAIR PLAN.